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“Using tri-generation plants . . . at the M1 facility, CO2 emissions can be reduced by approximately 70 per cent, making the facility more attractive to customers in light of the proposed carbon tax," said Mr Slattery.

Wilson HTM Investment Group analyst Andrew Dalziel also backed the company and its expansion.

He said the industry’s key problems were the high cost of entry and getting the electricity allocations needed for power-hungry data centres.

“The differences [between NextDC and its rivals] are they’ve got national operations, newer centres that are more efficient and power allocations," he said.

RBS Morgans said NextDC’s expanded fit-out implied a third of M1 had already been filled, and the broker described the stock as its key small-cap telco pick while maintaining a strong “buy" call.

This is despite the fact that the large capital investments involved mean that NextDC will not see a profit until sometime in 2013-14, when analysts predict it will reap a net income of $6.4 million.

NextDC also said it was looking at using sell and lease-back options by the end of the year on some of its facilities to get funds that could be reinvested for more fit-out programs.

Last week the company confirmed it had secured a 15-year lease on an existing 6000 square metre data centre in Canberra as part of efforts to service the government with cloud computing products.

The stock has gained 92 per cent since it floated, despite the S&P/ASX 300 Information Technology index falling by 18 per cent in the same period.